> For the complete documentation index, see [llms.txt](https://midashand-1.gitbook.io/midaspredict/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://midashand-1.gitbook.io/midaspredict/legal/risks.md).

# Risks

| Risk                             | Severity  | Mitigation                                                                     |
| -------------------------------- | --------- | ------------------------------------------------------------------------------ |
| Smart contract exploits          | 🔴 High   | Multiple audits, formal verification, tiered deployment, bug bounty            |
| Oracle manipulation or failure   | 🔴 High   | Multi-source aggregation, dispute window, panel fallback, dispute bonds        |
| LitVM network dependency         | 🔴 High   | Monitoring, circuit breakers, EVM portability to alternative L2s               |
| Bridge and rollup risk           | 🟠 Medium | Bridge health monitoring, stablecoin collateral alternative, market pause      |
| Regulatory uncertainty           | 🔴 High   | Legal review per jurisdiction, geo-fencing, governance transparency            |
| Sybil and referral abuse         | 🟠 Medium | Minimum deposits, circular-referral detection, velocity limits, monthly resets |
| Thin liquidity in new categories | 🟠 Medium | LS-LMSR bounded loss, boosted MP incentives, gradual expansion                 |
| Creator spam                     | 🟡 Low    | Minimum collateral, community flagging, UI curation, creator reputation        |
| Dispute resolution complexity    | 🟠 Medium | Tiered design, automated resolution for most markets, dispute bonds            |


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